23rd Dec 2019 09:22
(Alliance News) - Carclo PLC on Friday said it has completed its exit from the Wipac Ltd, the exterior LED lighting business.
The stock was trading 35% higher in London on Monday morning at 14.15 pence a share.
The plastic parts manufacturer said it appointed Rachael Wilkinson and Zelf Hussain of PricewaterhouseCoopers LLP as joint administrators of Wipac, which was immediately sold to Wipac Technology Ltd, a newly formed subsidiary of Wuhu Anrui Optoelectrics Co Ltd.
The GBP10.5 million proceeds from the sale will be applied by the administrators to reduce the outstanding liabilities owed to the creditors of Wipac. Carclo expects to secure about GBP3.5 million of the net proceeds, it said.
For the year to the end of March, Wipac generated a loss of GBP13.2 million and had gross assets of GBP46.3 million.
"The poor performance of Wipac has put significant financial strain on the group and the exit from this business will enable Carclo to focus on Technical Plastics and Aerospace which continue to perform well and offer encouraging long term opportunities," explained Chair Mark Rollins.
He added: "The group now has a more stable financial position from which to continue the long-term funding and pension contribution negotiations which are key to the future of Carclo."
In addition, Carclo said Ed Watkinson, chief financial officer, will step down from his role in January 2020. He was appointed to the role at the end of September on an interim basis.
The company said it is in the process of recruiting a long term CFO to join the management team, which will be focussed on establishing the long-term strategy for Carclo.
By Evelina Grecenko; [email protected]
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